A recently released McGraw Hill report showed an increase spent on green construction market worldwide between 2005 and 2011. It has shifted from a $6 billion industry in 2005 to a green construction market worth double, at $17 billion in 2011. The report entitled “SmartMarket Report: New and Remodeled Green Homes: Transforming the Residential Market” demonstrated that the overall penetration of green construction in the industry has also significantly improved. In 2006, green construction only represents 2% of new residential buildings. By 2011, the share has dramatically increased to 17%.
There are several reasons why green residential buildings are experiencing a boom in the construction market. For one, people are demanding greener homes and this has generated pressure on the market to produce more green construction, leading to more construction jobs and a healthy construction economy.
The face that green homes use less energy is another byproduct of these new types of construction. They significantly reduce the need to create more coal generated power plants, use less natural gas and nuclear energy, while also saving individual owners money on utility bills.
Despite a weaker national economy and less consumer spending, there is still a sharp increase on green construction spending. This is due to consumer desire to generate better quality of lives for themselves and the environment, as well as the opportunity to save money on utilities. Reconstructing green homes may mean that homeowners have to shell out extra expenses, but these are recouped over a brief period of time.
According to the study, 90% of respondents indicate the better quality of living as the reason for turning to green buildings, while 67% choose to convert to green homes or remodel their homes in eco-friendly ways in order to save money.
With these findings, it is quite easy to conclude that the residential construction market is warming up to green homes as much as the industrial construction market is.